daylight credit (or daylight overdraft, daylight exposure, intraday credit)
Credit extended for a period of less than one business day. Daylight credit may be extended by central banks to even out mismatches in payment settlements. In a credit transfer system with end-of-day final settlement, daylight credit is, in effect, extended by a receiving institution if it accepts and acts on a payment order even though it will not receive final funds until the end of the business day.
Copyright © 2006,
European Central Bank, Frankfurt am Main, Germany. This information may be obtained free of charge through the
ECB's website.
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